BIO Comments on DOJ’s Environmental Settlement Agreement with Philadelphia Energy Solutions

March 26, 2018

WASHINGTON–(BUSINESS WIRE)–#RFS–The Biotechnology Innovation Organization (BIO) today submitted comments
to the U.S. Department of Justice on the proposed Consent Decree and
Environmental Settlement Agreement with the United States Bankruptcy
Court for the District of Delaware in the case of Philadelphia Energy
Solutions Refining and Marketing LLC and PES Holdings LLC (PES).

Brent Erickson, executive vice president of BIO’s Industrial &
Environmental Section, states, “Philadelphia Energy Solutions’ claim to
the bankruptcy court that the Renewable Fuel Standard program caused its
financial difficulties is specious at best. The record shows that the
refiner ignored its RFS compliance obligations and sold renewable fuel
credits for profit, in order to pay unearned dividends to its Wall
Street shareholders. This proposed settlement agreement undermines the
goals of the RFS by allowing the refiner to profit by escaping its
obligations under the law.

“Under the proposed settlement agreement, Philadelphia Energy Solutions
is escaping 329 million gallons of its 2016 and 2017 renewable fuel
obligations along with its entire obligation for the first
three-and-a-half months of 2018. Moreover, the refiner is being allowed
to keep for future use 64.6 million renewable fuel credits that should
be turned in. PES cynically claimed to the bankruptcy court that other
refiners and fuel blenders were reaping windfall profits from selling
renewable fuel credits to them. The record now shows that PES is reaping
a windfall by breaking the rules.

“The RFS has been a success in opening the U.S. transportation fuel
market to innovation and competition. Biofuel producers have made
long-term investments to develop advanced and cellulosic biofuels, build
infrastructure, and create new jobs and economic opportunity. The
proposed settlement agreement represents an unwarranted transfer of
wealth to PES and its Wall Street shareholders at the expense of these
biofuel producers and their investors.”

A copy of BIO’s official comments, as filed, is available at https://www.bio.org/letters-testimony-comments/bio-comments-proposed-settlement-agreement-between-epa-and-philadelphia.

About BIO

BIO is the world's largest trade association representing biotechnology
companies, academic institutions, state biotechnology centers and
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nations. BIO members are involved in the research and development of
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biotechnology products. BIO also produces the BIO
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